20VC: VCs are Spreadsheet Monkeys and are Commoditised | Why Fees and Carry Misalign GPs and LPs | Why Founders Will Realise Multi-Stage Funds Damage Seed Rounds | Why We Need European Sovereignty More Than Ever with Taavet Hinrikus | The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch | Podwise
20VC: VCs are Spreadsheet Monkeys and are Commoditised | Why Fees and Carry Misalign GPs and LPs | Why Founders Will Realise Multi-Stage Funds Damage Seed Rounds | Why We Need European Sovereignty More Than Ever with Taavet Hinrikus
This episode explores the evolving landscape of venture capital, particularly in Europe, through an interview with Taavet Hinrikus, a partner at Plural and founder of Wise. Against the backdrop of a commoditized VC industry, Hinrikus argues for a more founder-centric approach, emphasizing alignment of incentives through reduced management fees and increased personal investment from GPs. More significantly, he criticizes the traditional VC model's misalignment with long-term outcomes, exemplified by the extended timelines to DPI (distributed to partners) and the prevalence of liquidation preferences that prioritize early returns for investors. For instance, Hinrikus advocates for a shift away from spreadsheet-based investing towards a deeper understanding of founders and their vision, particularly for ambitious, high-risk ventures. As the discussion pivoted to Europe's technological sovereignty, Hinrikus highlighted the need for increased investment in deep tech and a more unified European market to compete with the US and China. In conclusion, this interview offers valuable insights into the future of venture capital, emphasizing the importance of founder-investor alignment, the need for long-term vision, and the strategic imperative of European technological independence.
